The Indian Federation of Green Energy (IFGE) Sugar Bioenergy Forum has urged the Department of Food & Public Distribution (DFPD) to implement a uniform policy for the movement of ethanol across states. In a letter addressed to Shri Sanjeev Chopra, Secretary of DFPD, the IFGE highlighted the challenges faced by ethanol producers and suppliers due to varying state-level regulations, which are hindering the efficiency of the Ethanol Blended Petrol (EBP) programme.
The IFGE, which advocates for the advancement of the sugar and bioenergy sectors, pointed out that ethanol, classified as a state revenue subject, is subject to a patchwork of restrictions and control measures across different states. These measures are creating logistical bottlenecks, increasing costs, and causing delays in ethanol supply, ultimately affecting the national ethanol blending initiative.
The letter detailed several state-specific restrictions that are complicating the movement of ethanol:
Telangana: Requires an entry permit for Ethanol TTs, which can lead to delays and increased costs for ethanol suppliers.
Rajasthan: Requires an import permit and excise seal on TTs carrying ethanol from other
states, creating an additional layer of bureaucracy and costs.
Punjab, Haryana, Uttar Pradesh, and Bihar: Require export permits to send ethanol out of their respective states, which can lead to restrictions on the free movement of ethanol.
Uttar Pradesh: Also levies denaturation and OMD fees, mandates GPS-enabled Digilocks on TTs, and doesn’t permit ethanol imports from other states, creating a complex and restrictive regulatory environment.
Jharkhand: Requires GPS-enabled Digilocks on TTs carrying ethanol, which can increase costs and create logistical challenges.
West Bengal: Requires an import permit for ethanol brought into the state from other states, which can lead to delays and increased costs.
The IFGE also highlighted inconsistencies in denaturant requirements across states. For instance, Gujarat mandates 50 ppm of bitterant, while other states accept 40 ppm. Additionally, Gujarat does not accept brucine/brucine sulfate as a denaturant, and many states require two separate chemicals—one as a denaturant and another as a bitterant—leading to further inconsistencies and increased costs for suppliers.
In light of these challenges, the IFGE has called for the formulation of a uniform policy on ethanol movement to allow unrestricted inter-state transport without additional state-level permits and approvals. The federation also urged the standardization of a single denaturant for ethanol on a pan-India basis to ensure consistency in quality for distillers and Oil Marketing Companies (OMCs).
The IFGE believes that a uniform policy would simplify the regulatory environment and reduce costs for ethanol suppliers and also increase the efficiency of the ethanol blending programme (EBP). It will also assist to promote the use of ethanol as a renewable energy source and contribute to the achievement of the Government’s energy security and sustainability goals
The IFGE’s request comes in the wake of a recent Supreme Court ruling in October 2024, which affirmed that states have the authority to legislate on matters concerning industrial alcohol, including denatured spirits. However, the ruling also underscored the challenges posed by varying state-level regulations on the movement and taxation of ethanol.
The IFGE has expressed its gratitude to the Department of Food & Public Distribution for its efforts in promoting and developing the sugar and bioenergy industry. The federation has requested immediate attention to the issue and looks forward to the department’s intervention to streamline ethanol movement across states.
